Purchasing power refers to the amount of goods and services a person or entity can buy with a given amount of money. It ...

The index increased by 0.5% in January 2025 on a seasonally adjusted basis compared to a 0.4% increase in December 2024. CPI-U Formula The more common CPI-U calculation entails two primary formulas.

Because the PCE and CPI differ in their formula, weighting, scope and other effects, their results are different. The Federal Reserve prefers to use the PCE price index to measure inflation.

Understand the purpose of market escalation contracts and learn how the Consumer Price Index (CPI) is often used to make periodic contract price adjustments.